Smooth Delivery of Semi-submersible Rig COSLPIONEER

China Oilfield Services Limited COSL or the Company announces that its wholly-owned subsidiary COSL Drilling Europe AS CDE hosted in the morning on 26 October a ceremony in the deep-water wharf at Yantai CIMC Raffles Shipyard Co. Ltd. CIMC Raffles for delivery of the deep-water semi-submersible rig COSLPIONEER. The ceremony saw attendance of relevant officials of National Energy Administration and Ministry of Industry and Information Technology of the People s Republic of China; Liu Jian, Vice President of China National Offshore Oil Corporation and Chairman of COSL; Li Yong, CEO and President of COSL; Jens J rgen Arnesen, CEO of CDE and representatives of CIMC Raffles and Det Norske Veritas DNV , etc.

COSLPIONEER is a semi-submersible drilling platform designed and constructed in accordance with the regulations and standards stipulated by Norway waters and met the requirements of Norwegian Petroleum Safety Administration PSA, Norwegian Maritime Directorate NMD, DNV, the NORSOK petroleum industry safety standards and relevant traditional requirements for semi-submersible platforms. It can be deployed in the Norwegian North Sea as well as other regions in the world. This platform has an overall length of 104.5 meters, an overall width of 65 meters and an overall depth of 36.85 meters. It has a design draught of 9.2 - 17.75 meters and is designed to operate in water depths of 70 750 meters and wind speeds of up to 51.4 meters/sec. It has a racking capacity of 7,500 meters and a variable load capacity of 4,000 metric tons. It can support accommodation for up to 120 cabin crews.

Being one of the most advanced platforms built in China, COSLPIONEER is equipped with DP3 dynamic positioning and anchor mooring positioning systems and an unmanned cabin design to be remotely controlled from the navigation and operating rooms. The DP3 dynamic positioning system is renowned for its unparallel performance in safety: the original positioning can still be maintained in the event of malfunctioning happenings in any platform cabins. The anchor mooring system, when applied in suitable waters, can help lower operating costs.

COSLPIONEER puts together a portfolio of key equipment after thoughtful consideration of the needed advanced technological requirements, reliability, functionality and after-sale support. The resulting portfolio of equipment comprises sophisticated products from renowned world-class manufacturers in the maritime engineering industry and is installed in full compliance of the latest regulations and standards. The blowout preventer installed to the platform can operate under pressure of up to 15,000 psi and is equipped with casing shearing and sealing functions that allow emergency operations including hydraulic or sonar remote control and subsea robot-controlled operations to prevent major happenings like well kicks, well blowouts and well overflows. The platform is also equipped with gas well christmas tree transmission and hang-off drilling riser devices, allowing underwater installation of gas well christmas trees alongside with drilling operations to boost the overall efficiency of drilling production and reduce operating costs.

COSLPIONEER went through deep considerations in prevention of risks in each stage of design and construction. These considerations were made with reference to the specific Norwegian standards and relevant experiences in the offshore petrochemical industry, covering potential physical damages to crew members, pollution of the environment, equipment failures and platform-specific risks. Measures to mitigate risks were decided on pursuant to comprehensive analyses of nature of the risks, application of technologies, system designs, equipment deployment and level of automation. In addition, COSLPIONEER has worked at great lengths to minimize potential factors affecting crew members physical and mental safety in an effort to provide them a safe and comfortable work and living environment. For example, the drilling system s downward and upward drilling is fully automatic and can be remotely controlled to reduce manual labor required while enhancing crew members safety.

In the area of environment protection, COSLPIONEER is designed to achieve zero emission during the whole drilling process. Rock and earth debris will be shipped back to the shore for further processing. It is equipped with a sewage treatment system that is capable of treating accommodation sewage, dangerous and non-dangerous sewage to ensure that all rain water, industrial sewage and accommodation sewage have been treated up to a certain standard before releasing into the sea. These help achieve zero pollution to the environment. In addition, DP3 Dynamic Positioning System can effectively reduce the damage to sea floor vegetation in the waters with high protection requirements.

Jens J rgen Arnesen, CEO of CDE said: This is a red-letter day for CDE as COSLPIONEER has been delivered successfully. CDE will spare no effort in operating COSLPIONEER with a view to promoting the steady development of CDE and making contribution to COSL, our parent company.

Mr. Li Yong, COSL s CEO and President and CDE s Chairman said: The delivery of COSLPIONEER marks a staged achievement in our commissioning for construction of three semi-submersible rigs. We very much hope to broaden our experiences and contribute to the forthcoming smooth construction and on-time delivery of COSLINNOVATOR and COSLPROMOTER. I believe that the CDE management is fully capable of meeting all these challenges and grasping opportunities to operate this new platform well and provide high quality services to our customers.

Mr. Liu Jian, COSL s chairman, added: The delivery of COSLPIONEER for operation represents an important milestone in upgrading of COSL s deep-water operation capabilities and a major achievement in COSL s efforts to integrate CDE s operations pursuant to the acquisition. COSL will leverage in full its strength enhanced by new equipment to explore new markets and achieve better return for shareholders.